Greencore, the convenience food giant, has reported strong sales in Q3, suggesting a recovery from the impacts of the COVID19 crisis.
The Irish producer posted pro forma revenue levels of over 50 per cent higher than in the same period in 2019. Revenue reached over £360m in Q3 of this year. Behind the boost in revenue is likely to be the role of a strong food-to-go market, which was 91 per cent above last year’s levels, making up £236.5m of company revenues. The strength of Greencore’s food-to-go industry reflects the wider industry trends, which is showing strong signs of recovery since the pandemic.
Share prices bounced back, increasing 3.3 per cent after the results were posted.
CEO Patrick Coveney commented:
“We are encouraged by the improvement in revenue, profitability and cash flow momentum in Q3 and the early weeks of Q4. Against the backdrop of the UK economy reopening fully, we are rebuilding our economic model effectively and sustainably with all stakeholders, supported by our long-standing customer relationships and further enhanced by the new business wins we have secured this year.
The performance is underpinned in particular by the energy and dedication of our people. We are also delighted to have made progress in creating a fully recyclable sandwich skillet, a key commitment of our sustainability strategy. We have a strong position in the dynamic UK convenience food market and are confident about our medium-term prospects.”
Difficulties with global supply markets and UK labour shortages present challenges to firms such as Greencore, but the resilience that the food industry has shown during the pandemic is a promising sign that companies will be able to adapt to volatile conditions.